Luxury furniture retailer Arhaus (NASDAQ:ARHS) reported Q4 CY2025 results beating Wall Street’s revenue expectations , with sales up 5.1% year on year to $364.8 million. On the other hand, next quarter’s revenue guidance of $310 million was less impressive, coming in 5% below analysts’ estimates. Its GAAP profit of $0.11 per share was 15.8% above analysts’ consensus estimates.

Is now the time to buy Arhaus? Find out in our full research report.

Revenue: $364.8 million vs analyst estimates of $350.6 million (5.1% year-on-year growth, 4.1% beat)

EPS (GAAP): $0.11 vs analyst estimates of $0.10 (15.8% beat)

Adjusted EBITDA: $34.98 million vs analyst estimates of $32.41 million (9.6% margin, 7.9% beat)

Revenue Guidance for Q1 CY2026 is $310 million at the midpoint, below analyst estimates of $326.4 million

EBITDA guidance for the upcoming financial year 2026 is $155.5 million at the midpoint, above analyst estimates of $152.4 million

Operating Margin: 5.6%, down from 8.2% in the same quarter last year

Free Cash Flow was -$8.81 million, down from $13 million in the same quarter last year

Locations: 107 at quarter end, up from 103 in the same quarter last year

Same-Store Sales fell 2.8% year on year (-6.4% in the same quarter last year)

Market Capitalization: $1.18 billion

With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ:ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years.

With $1.38 billion in revenue over the past 12 months, Arhaus is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers.

As you can see below, Arhaus grew its sales at a sluggish 3.9% compounded annual growth rate over the last three years.

This quarter, Arhaus reported year-on-year revenue growth of 5.1%, and its $364.8 million of revenue exceeded Wall Street’s estimates by 4.1%. Company management is currently guiding for flat sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months, similar to its three-year rate. This projection is healthy and suggests the market is forecasting success for its products.

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Arhaus operated 107 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 10% annual growth, much faster than the broader consumer retail sector. This gives it a chance to scale into a mid-sized business over time.

When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.

The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Arhaus’s demand has been shrinking over the last two years as its same-store sales have averaged 2.7% annual declines. This performance is concerning - it shows Arhaus artificially boosts its revenue by building new stores. We’d like to see a company’s same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base.

In the latest quarter, Arhaus’s same-store sales fell by 2.8% year on year. This performance was more or less in line with its historical levels.

We were impressed by how significantly Arhaus blew past analysts’ EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 3.9% to $8.71 immediately following the results.

So should you invest in Arhaus right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.